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Delhi government files FIR over GST fraud

NEW DELHI: The trade and taxes department of Delhi government has unearthed a GST fraud, in which a person cheated the government by submitting fake documents to claim input tax credit of over Rs 50 crore.
An FIR has been registered with the Economic Offenses Wing of Delhi Police.

Delhi VAT/GST commissioner H Rajesh Prasad, in a statement issued on Wednesday, said the accused had no eligible income tax credit supported by stock, documents or declarations. “Fake credit of Rs 15 crore had been further transferred to other traders, who have also come under the radar of the department and are being prosecuted,” the statement read.

The accused had already availed tax credit of Rs 15 crore out of Rs 50 crore. Since the credits were created through falsification of records, the remaining credit of Rs 35 crore has been suspended to ensure the accused is not able to further defraud the government.

The accused had applied for registration under Delhi VAT Act and was given the registration as per the procedure. After the implementation of GST, he claimed input tax credit. Since the tax credit was huge, the department deployed an officer to carry out proper verification.

However, when the officer visited the firm’s address, he reported that it did not exist. Upon further verification, it was found that the documents submitted by the accused during registration were also faked.